Associated Brokerage Center, Inc. provides a comprehensive liability solution for 501 (c) Non-Profit organizations that offers five unique “flexible” coverages including Directors & Officers Liability (lead coverage), Employment Practices Liability, Fiduciary Liability, Workplace Violence, and Internet Liability.
10 Reasons to Choose Associated Brokerage Center for D&O Coverage
- Five part form which includes Non-Profit Directors & Officers Liability, Employment Practice Liability (including Third Party coverage), Fiduciary Liability, Workplace Violence, and Internet Liability coverages
- Optional selection of counsel – Insured may choose defense counsel or tender the defense to the Underwriter
- Defense Costs are in addition to the Limit of Liability
- Most favorable venue wording for punitive, multiple or exemplary damages
- Full severability for Individual Insureds; expanded severability for the insured organization
- Order of payments language with priority placed on indemnifying Individual Insureds first
- Employment loss control services available via the internet and access to our loss assistance hotline – 2 free hours of legal consultation
- Modified consent to settle (hammer) clause – 50/50 with 10% retention reduction for Insured’s acceptance of the first settlement offer
- Excess Benefits Transaction Excise Tax coverage ($10,000) and Emergency Medical Treatment and Active Labor Act coverage ($100,000)
- Personal & Advertising Injury coverage
Still not sure why you need this coverage? Please read the claims scenarios below.
Breach of By-Laws
Members of an association filed a lawsuit alleging the recent election of a new Executive Director did not follow the correct procedures outlined in the association’s
by-laws. Members argued that the majority vote required was not obtained and the by-laws were modified to suit the self-interest of the board. Defense costs and settlement exceeded $75,000.
Defamation
The long time founding yacht club members had their privileges revoked. They alleged some of the younger board members made false statements and coerced
other club members into a bias voting position. They sued for defamation and non-monetary damages to restore their senior club member benefits. Through arbitration, a settlement was reached that exceeded $20,000.
Membership Discrimination
Plaintiffs represent a group of membership applicants who held Muslim religious beliefs and were denied entry into the country club. They alleged membership discrimination based on religion. The claim settled for over $100,000.
Misrepresentation
A non-profit cooperative was attempting to merge with another because of financial difficulties. The surviving co-op requested membership information and the most recent balance sheet and income statement from the distressed co-op. Soon after the merger it became apparent that the acquired co-op overstated their sales and membership enrollment. The board of the newly formed co-op felt mislead and immediately sued the former Treasurer alleging misrepresentation. The prior co-op’s insurance policy provided defense cost to the individual.
Misappropriation of Funds
A grant making foundation receiving private donations was alleged to have used those funds for purposes not associated with the foundation’s underlying mission. A group of supporters sued the foundation’s board alleging misappropriation of funds and breach of duty. Defense costs exceeded $65,000.
Anti-trust
A large trade association was being investigated for violations of restraint of trade and anti-trust activities associated with their accreditation and certification
program. The case was settled out of court after the association agreed to modify its standard setting and trade practices.The legal defense amounted to $150,000.